Do Solar Panels Increase Home Value?

As environmental awareness grows and energy costs rise, solar panels are gaining popularity among homeowners. 

Why do solar panels increase home value?

Solar panels are seen as an attractive feature, particularly for eco-conscious buyers. 

Eco-friendly solar panel investment

With climate change concerns and the global push towards reducing carbon emissions. Homes that offer sustainable solutions like solar power are becoming more desirable. 

Reduced energy costs with solar panel investment

In the context of rising energy prices, solar panels offer a hedge against future price increases. 

Traditional energy costs fluctuate due to market demand and global events. Owning a solar-powered home can provide long-term financial stability. 

How much do solar panels increase the value of your home?

According to some studies, solar panels can increase a home’s value by as much as 20-25%. 

However, this boost in value is influenced by installation costs, local demand for renewable energy, and neighbourhoods in which the home is located. 

In areas with higher electricity costs or more environmentally conscious residents. The demand for homes with solar panels tends to be higher, pushing property values up even further.

Solar panel investment costs

In the UK, the typical cost of installing solar panels ranges from £3,500 to £7,300. This depends on the size and type of the system. 

Solar panel battery investment

Adding a home battery for energy storage may increase this cost by around £2,000. But it significantly enhances the overall energy efficiency of the home. 

The ability to store excess energy generated during the day for use at night or on cloudy days adds to the system’s appeal. And can maximise cost savings. 

Smart Export Guarantee 

The Smart Export Guarantee (SEG) is a UK government scheme designed to support households and businesses that generate renewable energy. 

Under the SEG, small-scale producers of electricity from renewable sources, such as solar panels or wind turbines, can sell their excess energy back to the national grid. 

Energy suppliers pay for the surplus energy, allowing homeowners and businesses to earn money for the electricity they export. To qualify, installations must meet certain criteria, and households need to register with an energy supplier offering SEG tariffs. It’s a key incentive for promoting renewable energy adoption in the UK.

How much energy do solar panels produce?

Beyond the upfront costs, the amount of energy a solar panel produces is another consideration. 

The average solar panel in the UK has an output of approximately 265 watts. This can vary from 190 to as much as 363 watts annually, depending on factors like panel quality and geographic location. 

While the UK receives about 1,530 hours of sunlight per year, solar technology is advancing rapidly, making it possible for less sunny areas to benefit from solar installations. 

How much do solar panels increase home value for homeowners & property investors?

According to the Energy Saving Trust, homeowners could save just over £450 per year by installing solar panels on their roofs. 

One of the most compelling reasons to invest in solar panels is the potential for significant long-term savings on energy bills; being able to stay compliant with legislation; having high energy efficiency levels; reducing carbon levels and even being able to sell this energy. 

In the long run, all these things will work together to increase home value for homeowners & property investors, read more about these individual factors in the points below.

Selling renewable energy

Additionally, homeowners can benefit from selling any surplus energy generated back to the grid; further increasing their financial returns. 

The ability to generate and sell renewable energy not only lowers utility bills but also opens up a potential revenue stream.

Energy cost savings with solar panel investment

In the context of a property sale. The presence of solar panels can enhance a home’s appeal to buyers who are looking for long-term savings on energy costs. 

Many buyers are willing to pay a premium for a home that promises lower energy costs and aligns with their sustainability goals. 

Green Energy Legislation and solar panel investment

Governments around the world are introducing new legislation and incentives aimed at promoting green energy. The demand for homes with solar panels is likely to rise further.

Energy efficient ratings

Homes with solar installations often boast higher energy efficiency ratings, which can have a direct impact on market value. 

Some estate agents report that buyers are willing to pay up to 20% more for homes with high energy efficiency standards. 

For example, the average house price in the UK was £294,000 in December 2022. A 20% premium on that price would push the value to over £352,000.

Low carbon levels with a solar panel investment

According to recent reports, renters in London are willing to pay up to 13% more in rent for properties that boast high energy efficiency standards. 

This means that property investors who install solar panels may see a higher rental income. In addition to the increased value of the property itself. 

How much do solar panels increase home value through green markets

There are some concerns about potential drawbacks, such as buyers who may be hesitant about solar panels due to aesthetics or misunderstandings about solar panel maintenance. There is little doubt that the real estate market is shifting toward a greener future. 

Reducing carbon emissions

Governments and environmental agencies are increasingly focused on reducing carbon emissions. Which is pushing property owners to invest in renewable energy solutions like solar panel investments. 

New environmental legislation is on the horizon. And landlords and property investors are already beginning to prioritise properties with higher energy performance ratings.

Installing solar panels now, along with other green upgrades like solar batteries can make a property more attractive to buyers in the future. 

Sustainable homes 

As the market continues to prioritise sustainability. Homes equipped with renewable energy sources are likely to see higher demand, faster sales, and potentially more competitive offers. 

Early adopters of solar technology stand to benefit the most. The demand for greener homes will only grow stronger as environmental regulations tighten.

Choose Warmaway for a smart, long-term solar panel investment

Although solar panel investments can be costly. The combination of energy savings, increased property value, and the potential to earn income through surplus energy generation makes it a worthwhile consideration. 

Contact our friendly team for further information.